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Harrison Co. expects to sell 250,000 units of its product next year, which would generate total sales of $22,500,000. Management predicts that pretax net income

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Harrison Co. expects to sell 250,000 units of its product next year, which would generate total sales of $22,500,000. Management predicts that pretax net income for next year will be $1,300,000 and that the contribution margin per unit will be $20. Complete the below table to calculate the next year's total expected variable costs and fixed costs. HARRISON CO. Forecasted Contribution Margin Income Statement Units S per unit 250,000 Contribution margin $ 20 Required information [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019. HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,900 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Pretax income $2,452,500 1,962,000 490,500 387,000 $ 103,500 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-even point in sales dollars. 1. units Break-even point Break-even point 2. Required information [The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019. HUDSON Co. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,900 units at $225, each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Pretax income $2,452,500 1,962,000 490, 500 387,000 $ 103,500 es 1. Assume Hudson Co. has a target pretax income of $159,000 for 2020. What amount of sales (in dollars) is needed to produce this target Income? 2. If Hudson achieves its target pretax income for 2020, what is its margin of safety (in percent)? (Round your answer to 1 decimal place.) 1. Amount of sales 2. Margin of safety % Required information (The following information applies to the questions displayed below.) Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,900 units at $225 each) Variable costs (10,900 units at $180 each) Contribution margin Fixed costs Pretax income $2,452,500 1,962,000 490,500 387,000 $ 103,500 Assume the company is considering investing in a new machine that will increase its fixed costs by $39,000 per year and decrease its variable costs by $10 per unit. Prepare a forecasted contribution margin income statement for 2020 assuming the company purchases this machine. HUDSON CO Forecasted Contribution Margin Income Statement For Year Ended December 31, 2020 Sales Variable costs Contribution margin Fixed costs Income (pretax)/Loss Should the company purchase the machine

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